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OG Cannabis Insurance Blog

The insurance game is an ever-changing environment, especially in the Cannabis Dispensary Insurance sector. There are a variety of different factors (e.g. cannabis laws and policies) that can affect the way your insurance works and how you and your business are covered.

The OG Cannabis Insurance blog keeps you up to date on cannabis insurance, laws and policies, and dispensary insurance news so you can be proactive on protecting yourself when the unexpected happens. We update our cannabis insurance blog regularly so check back soon for more posts!

Who Should Consider Getting Cannabis Cargo Insurance

A Green Leaves on a Wooden Plate

Insurance is one of the best ways to minimize risk in your cannabis business. Depending on your place in the supply chain, different liability coverages can protect your cannabis business from damage, loss, or theft. Farmers need protection against losses caused by bad weather, damaged or lost goods while being stored, and other types of losses. Other supply chain players include manufacturers, delivery companies, online distributors, wholesalers, and retailers. Risks can happen across this chain, and cannabis cargo insurance is one of the best measures a business owner can take to protect the crop and the money supporting your cannabis business. This blog will discuss businesses that should get a cannabis cargo insurance policy.

What is Cannabis Cargo Insurance?

Cannabis cargo insurance is a cover that protects your crop, goods, and money during transportation from one area to another. It covers inventory and cash from theft, damage, loss, and other risks. Risks include the following;

  • Damage to the harvested crop
  • Inventory theft
  • Inventory loss
  • Medical bills after an accident
  • Damage to the cargo vehicle
  • Injuries to the motorist and other claims for damages
  • Damage to your commercial property

For comprehensive coverage, you may consider different types of policies, such as;

  1. General liability insurance: For coverage against bodily injury, property damage, medical expenses, and legal fees incurred during the delivery of cannabis products.
  2. Product liability insurance: To cover the inventory from theft, fire, and natural disasters. It also protects you against claims related to product use, including adverse side effects.
  3. Cyber insurance: For coverage against app-based delivery services in case of unexpected service disruptions, extortion, and other online risks.
  4. Business auto insurance cover: To cover vehicle damage, injuries, pain and suffering, and medical bills related to accidents during the transportation of the products.
  5. Cargo insurance: Provides coverage against loss, damage, or theft during the loading, transportation, and unloading of cannabis products.
  6. Crime insurance: Provides coverage against dishonest employees and third parties involved in your cannabis operations.

What type of business should get cannabis cargo insurance?

Marijuana legalization has opened up new opportunities. The supply chain comprises growers, processing firms, wholesalers, delivery companies, dispensaries, and retailers. The movement of cannabis products from seed to consumption faces several risks that require valid cargo cannabis insurance. Here are cannabis businesses that could benefit from cannabis insurance:

Cannabis growers

These are the people who make the cannabis business possible. Cannabis in the US is grown for seeds, fiber, and cultivars. Different states have legalized weed for medical and recreational purposes. A lot of things can happen between planting and harvesting. Weather conditions can affect the growth of the crop, and this can affect the entire supply chain. To prevent loss of income, growers must get relevant insurance liability cover to mitigate losses attributed to crop growth. After harvest, the crop must be dried and transported to the processing firm. Exposing the crop to suboptimal conditions can affect the potency and taste of the final product. These processes require insurance against any damage, loss, or theft that could affect the grower’s income.


Once the cannabis crop arrives at the extraction plant, the manufacturer takes it through various processes to ensure it is in acceptable form and composition. The manufacturing process also includes packaging of the finished product and labeling. These processes involve the movement of inventory from one place to another. The manufacturer then transports it to the wholesalers. Cannabis insurance can cover the manufacturer against any liability associated with the use of the final product, including neglect when labeling the products. Cargo insurance protects the manufacturer from any losses that happen while the product is being shipped to wholesalers. This includes accidents, injuries, theft, and damage from collisions, among other things.

Delivery services

Cannabis distribution in the US is tricky because different states have different laws. Some laws may prohibit the transportation of cannabis, depending on state regulations. Many distributors may collect payments on behalf of the wholesalers. Losses can happen due to natural disasters, road accidents, theft, and collisions. This loss can occur to either the inventory or the cash collected from retailers. Cybercrime and other technological failures that could disrupt the business poses additional risks for online distributors. Insurance carriers can mitigate such losses and keep the business running amid such challenges. In addition, cannabis transporters with type II licenses collect the excise tax from retailers and then remit it to the government, so they need extra coverage for this money.

Wholesalers in the cannabis industry

Wholesalers need to insure the cannabis products under their care. They may also hire licensed transporters to distribute the products to other licensees. Cannabis insurance ensures they are fully covered against losses and damage to the product while in their custody or during delivery. Refrigeration devices can fail, and other risks can occur between the warehouse and the retailer. Cannabis insurance protects wholesalers against such losses.


Dispensaries and delivery groups sell cannabis products to the final consumer. Products can go bad, get damaged, or be stolen during this time. The right cannabis insurance can help prevent such losses, including claim-related losses.

The Advantages of Cannabis Insurance

Cannabis insurance needs are many in the cannabis supply chain. There are many insurance policies available to investors in the cannabis industry. These include crop insurance, property insurance, commercial auto insurance, and personal auto policies. Combining different hemp insurance policies covers your cannabis business against third-party claims. A cannabis cargo insurance policy comes with the following benefits:

  1. Commercial property damage
  2. Personal injuries that occur while transporting cannabis
  3. Vehicle damage
  4. Collision damage
  5. Natural disasters
  6. Employee theft
  7. Losses caused by equipment failure
  8. Lost wages and lost profits due to stalled cannabis operations

How to get cannabis cargo insurance for your cannabis business

When buying a cannabis cargo insurance policy, consider the following:

  1. Your license requirements
  2. State requirements
  3. The value of the items transported
  4. Amount of cash from cannabis in your custody.
  5. Workers’ compensation

Looking for Cannabis Cargo Insurance in the US? Call OG Cannabis Insurance for an instant quote.

Regardless of the role your cannabis business plays in the supply chain, you need the right insurance coverage. Cannabis cargo insurance can save you a lot of headaches in case something happens during the distribution of your cannabis products. Whether running a brick-and-mortar cannabis business or e-commerce, OG Cannabis Insurance has the right coverage for your business’s commercial property, inventory, vehicles, and staff. Contact us at (877) 473-7979 for a quote.

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